Paragon Bank has secured £27m through the British Business Bank’s Growth Guarantee Scheme, taking its total capacity under the scheme to £55m.
Of this, £10m will be set aside for UK businesses hit by changes in international trade tariffs.
The funding will help Paragon support more small and medium-sized enterprises (SMEs) across the UK, especially those in manufacturing facing higher costs and supply chain problems due to global tariff rates.
So far, Paragon has delivered over £40m in scheme-backed funding to more than 300 SMEs, helping sectors like construction, transport and agriculture.
The extra capital will allow Paragon to offer more unsecured loans and asset-based finance to firms who may find it hard to get funding elsewhere.
Phil Hughes, deputy managing director of SME lending at Paragon Bank, said: “The additional funding from the British Business Bank is a welcome boost and a clear vote of confidence in our ability to deliver meaningful support to UK SMEs.
“The dedicated £10 million for businesses impacted by international trade disruption is particularly important – these firms have faced unique pressures and we’re proud to be in a position to help them adapt and thrive.
“We’ve already seen the transformative impact of the Growth Guarantee Scheme, and with this new allocation, we’re ready to support even more businesses on their growth journeys.”
Reinald de Monchy, chief banking officer at the British Business Bank, said: “We are pleased to provide this additional capacity to Paragon Bank from the Growth Guarantee Scheme.
“Manufacturing is an important sector for the scheme, and we look forward to seeing the impact Paragon will have on their customers from this lending, unlocking much-needed capital for smaller businesses across the sector and generating growth.”
